The records every small business should keep from day one

Most business owners start keeping proper records only when something forces them to: a SARS query, a bank asking for financial statements, or a year-end that arrives faster than expected. Starting early is far easier. A few simple habits, set up in the first month, save hours of searching later.

What to keep

• Sales invoices for everything you bill, numbered in sequence.
• Supplier invoices and receipts for every business expense, including small cash purchases.
• Bank statements for every business account and card.
• Payroll records: payslips, employment contracts, and your PAYE, UIF and SDL submissions if you have employees.
• Contracts and agreements with clients, suppliers, landlords and lenders.
• An asset register listing equipment, vehicles and other assets, with purchase dates and costs.
• VAT records, including tax invoices and returns, if you are registered for VAT.

How long to keep them

As a general rule, SARS expects records to be kept for five years from the date you submit the related return. Companies also have to keep accounting records for seven years under the Companies Act. Keeping everything for at least seven years is the simplest way to cover both.

Records can be kept electronically, as long as they are complete, readable and can be produced when asked for. A scanned receipt in a well-named folder is better than a faded paper slip in a shoebox.

Habits that make it easy

• Use a separate business bank account. Mixing personal and business spending is the single biggest cause of messy books.
• Capture documents as they arrive. Photograph or scan receipts the same day, rather than at month-end.
• Reconcile monthly. Match your bank statement to your records each month, while the details are still fresh.
• Use one system. Whether it is accounting software or a structured spreadsheet, keep everything in one place.

Good records are not paperwork for its own sake. They are how you know where your business stands.

If your records have fallen behind, it is rarely too late to catch up. A structured clean-up, followed by a simple monthly routine, usually puts things right within a few weeks.